P - Glossary

What is peak season? Peak season a season with the highest demand. Peak season is the opposite of off season.

What is per diem? Per diem is a term used in the hotel industry meaning per day.

What is Perfectly Elastic? Perfectly elastic is a term used in the hotel industry to describe the relationship between supply and demand.

What is perfectly inelastic? Perfectly inelastic is a term used in the hotel industry to describe the relationship between supply and demand.

What is perishable? Perishable a term meaning that if a product or service is not sold in a given time (a day, a night, a week) that product cannot later be sold.

What is perishable inventory? Perishable inventory are products or services that possess the possibility of spoilage or loss. Food is a perishable commodity.

What is pick up? Pick-up is the number of rooms sold. Pick-up also refers to the number of units that have been confirmed as sold within a block.

What is PMS? In the context of hotels, PMS refers to Property Management System.

What is prestige pricing? Prestige pricing is a pricing strategy of using high price to elevate the positioning of an organization’s products and services and increase the perceived value to the consumer.

What is price elasticity of demand? Price elasticity of demand is the value calculated by taking the absolute value of the percentage change in the quantity of a good demanded and dividing that by the percentage change in the price of that good.

What is price elasticity of supply? Price elasticity of supply is a value calculated by taking the absolute value of the percentage change in quantity of a good supplied and dividing that by the percentage change in the price of that good.

What are price fences? Price fences are rules and regulations constructed to prohibit customers from leaping from one segment to another in an attempt to receive a lower rate.

What is price fencing? Price fencing is the practice of setting up rules and restrictions regarding the eligibility of an individual to purchase products and services at a specific price.

What is price gouging? Price gouging is the practice of setting price levels much higher than what is perceived just and fair.

What is price parity? Price parity is the practice of maintaining consistent prices across all channels of distribution. Detailed information is available on the Hotel Price Reporter blog:

What is a Property Management System? A property management system is a computerized system used to manage the inventory of products and services available at a single location such as a hotel or a small BnB.

What is a stay pattern? A stay pattern is a pattern that can cover the individual’s arrival day, number of nights’ stay, and departure day for the guest.